Commodities markets summary

Oil prices have fallen after spiking for two days, as traders eyed a possible delay to US-led military action against Syria.

After having hit a two-year high on Wednesday on worries of escalation of the Syrian civil war, New York's main contract, West Texas Intermediate (WTI) for delivery in October, fell $US1.39 to $US108.80 per barrel on Thursday.

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Brent North Sea crude oil for October dropped $US1.39 to $US115.16 a barrel.

Anticipation of a Western crackdown on Syria on Tuesday and Wednesday had driven WTI to $US112.24, the highest level since early May 2011, while Brent soared to $US117.34, last seen in late February.

PRECIOUS METALS

Gold fell, snapping a five-day rally as a US-led military strike on Syria appeared not to be imminent and investors turned their attention to strong US economic growth and the Federal Reserve's plans to rein in its stimulus program.

President Barack Obama told the US people a military strike against Syria was in their interest following a gas attack against Syrian civilians last week, and Britain said armed action would be legal.

But intervention appeared likely to be delayed until UN investigators report back.

A US government report showed the US economy accelerated more quickly than expected in the second quarter because of a surge in exports, bolstering the case for the Federal Reserve to wind down a major economic stimulus program.

US Comex gold futures for December delivery GCZ3 settled down $US5.90 at $US1,412.90 an ounce, with trading volume about 30 per cent below its 30-day average, preliminary Reuters data showed.

BASE METALS

Copper futures closed lower on the London Metal Exchange (LME), dragged down by a firm US dollar and apprehension over a possible military strike on Syria.

At the PM kerb close on Thursday, LME three-month copper was down 1.9 per cent at $US7,152 a metric ton, its lowest close in around three weeks.

Aluminium settled 1.6 per cent lower at $US1,834.50 a ton.

US data showing first jobless benefit claims, a proxy for layoffs, decreased by 6,000 to a seasonally-adjusted 331,000 in the week ending August 24, also helped.